Dave & Buster’s price target lowered to $26 from $30 at Piper Sandler

Piper Sandler analyst Brian Mullan lowered the firm’s price target on Dave & Buster’s to $26 from $30 and keeps a Neutral rating on the shares following quarterly results. For the quarter same-store sales were down 3.0%, which compared slightly unfavorably with consensus of down 2.3%. In the release, Dave & Buster’s disclosed that Q3-to-date same-store sales are running in-line with the Fiscal Q2 “exit rate,” which is something worse than down 3.0%, with the implication being that consensus same-store sales estimates for the current quarter need to be revised lower as compared to the pre-print estimate of down 0.9%. From a store level margin and from an EBITDA $ perspective, the quarter was a miss on both counts, Piper adds.